| Budget Amount *help |
¥4,680,000 (Direct Cost: ¥3,600,000、Indirect Cost: ¥1,080,000)
Fiscal Year 2015: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2014: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2013: ¥2,860,000 (Direct Cost: ¥2,200,000、Indirect Cost: ¥660,000)
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| Outline of Final Research Achievements |
In Japan, FX trading is controlled by loss-cut rules. FX trading brokers are supposed to compulsorily execute offsetting transactions when total unrealized losses arising from a customer's investments exceed a predetermined ratio. This operation is intended to curb investors’ losses and reduce firms’ financial risks. By contrast, some people are opposed to this operation because it restricts the freedom of investment. This paper assesses the effectiveness of loss-cut rules. The results reveal that a high probability of invocation of the loss-cut rules is found in investors who habitually, not temporarily, have a strong tendency toward the disposition effect, and that such a tendency is diminished after experiencing a compulsory loss-cut. These findings suggest that the compulsory loss-cut system works effectively for investors who are unable to put a stop-loss strategy in action at their own initiative and that this system disciplines investors whose loss has been compulsorily cut.
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